NNPC tower
The Federal Government acquired N3.211 trillion as Petroleum Profits Tax (PPT) and Royalties from the third quarter of 2015 to 3rd quarter of 2017, in accordance with the Economic Report of the Central Bank of Nigeria (CBN).
Breakdown of the income to the federal government confirmed that the nation acquired N495.39 billion as PPT/royalties in third quarter of 2015; N388.66 billion, in fourth quarter of 2015; and N314.04 billion throughout first quarter of 2016.The income from PPT/royalties declined in second quarter of 2016 to N212.78 billion; later elevated to N392.38 billion in third quarter of 2016; and decreased to N273.13 billion in fourth quarters of 2016.
There was a rebound of income to N325.38 billion in first quarter of 2017; N320.49 billion in second quarter and N489.41 billion in the course of the third quarter of 2017.The CBN report for the third quarter of 2017 launched lately, revealed that N103.46 billion was allotted to the 13 per cent Derivation Fund for distribution among the many oil producing states.
Analysing the report, CBN disclosed that oil receipt at N1.27 trillion in the course of the quarter beneath evaluation was decrease than the proportionate quarterly price range estimate by 6.2 per cent, however was above the receipts in the previous quarter by 59.7 per cent. As acknowledged by the CBN, the decline in oil income relative to the proportionate quarterly price range estimate was because of the shortfall in receipts from crude oil/fuel exports, owing to the decline in crude oil manufacturing, arising from leakages and shut-ins/shut-downs at some NNPC terminals.
It disclosed that Nigeria’s crude oil manufacturing, together with condensates and pure fuel liquids, averaged 1.83 million barrels per day (mbd) or 168.36 million barrels (mb) in the evaluation quarter.This, it famous, represented an improve of zero.17 mbd or 10.2 per cent, in contrast with 1.66 mbd or 151.06 mb recorded in the previous quarter. The growth was as a result of sustained peace in the oil manufacturing area.CBN acknowledged that crude oil export stood at 1.38 mbd or 126.96 mb, representing 14.zero per cent improve over 1.21 mbd or 110.11 mb in the previous quarter.
The growth, it hinted, was due, primarily, to diminished actions of vandals in the Niger Delta area.Allocation of crude oil for home consumption was maintained at zero.45 mbd or 41.40 million barrels in the evaluation quarter.
Nigerian National Petroleum Corporation (NNPC) Chief Operating Officer, Upstream, Malam Bello Rabiu, proposed some key amendments to the Deep Offshore and Inland Basin Production Sharing Contract (PSC) Act to allow the Federal Government optimize the gathering of royalties and different income in deep water oil manufacturing actions.He famous that it was crucial to impact increment in royalties throughout all classes to extend authorities take.
“It is our opinion that the proposal to extend the royalty charge for terrains past 1000 metres, from zero per cent to three per cent, is commendable however it's essential to additionally make corresponding changes in different classes,” he mentioned.He argued that in the choice, the graduated royalty scale as offered in the Act ought to be eliminated whereas the Minister of Petroleum Resources ought to be empowered to intermittently set royalties payable for acreages positioned in deep offshore and inland basin manufacturing sharing contracts by laws primarily based on established financial parameters.
“It is our opinion that these incentives have outlived their usefulness and at the moment are impediments to the Federal Government’s income assortment efforts. The use of such incentives might be terminated by an modification of part four of the Act,” the Corporation famous.He referred to as on the National Assembly to hunt related enter from the Federal Inland Revenue Service, to resolve the divergent opinions concerning the methodology for the computation of the taxes which might come up as a results of the proposed royalty regime.